Tiger Global founder Chase Coleman says to buy shares of mega-cap tech companies, per Bloomberg.
The sector is attractive again, Coleman says, because of emerging tech like AI.
The hedge fund was stung by 2022's tech market rout, reportedly marking down $23 billion from its startup investments.
Hedge fund billionaire Chase Coleman says mega-cap stocks are looking like a good bet again after a brutal year for the sector in 2022, as companies embrace rising technologies like artificial intelligence.
Per Bloomberg, The Tiger Global founder said to allocate capital to FAANG stocks, shorthand for large companies including Facebook parent Meta, Apple, Amazon, Netflix, and Google parent Alphabet. Coleman cited giants like Amazon, whose sellers have used ChatGPT to help write product listings.
At the Boys' Club of New York's annual lunch on Tuesday, the billionaire hedge fund boss said new areas like AI are adding to the sector's investment case even if tech firms "have been in their own version of recession for almost a year."
"Think about it in terms of companies investing in these technologies, and how well they use it," Coleman said. "It's going to be gradual. Be patient."
The recommendation to look at opportunities in the tech space comes after Tiger Global was pummeled by the rout in the sector throughout 2022. The Wall Street Journal reported that the hedge fund marked down its venture capital bets by $23 billion last year.
Read the original article on Business Insider